I wrote last week about the need to watch for price gouging after disasters such as Hurricane Sandy. It's wise to proceed cautiously when donating to charities after disasters, too. Authorities sued a charity last week.

New Jersey authorities sued the operators of the Hurricane Sandy Relief Foundation, alleging they unlawfully misled the public by diverting donated funds into their personal accounts; misled donors with false claims about the ways donations would be used; falsely claimed donations are tax-deductible; and otherwise deceived the public, according to a news release, which you can find here.

Before donating after a disaster, do your best to research the organizations you're donating to. That includes verifying that they are registered as a charity. You can do that in Pennsylvania through the state attorney general's office, here.

If you're donating to a charity in another state, find out which agency regulates charities and verify their status.